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To halt foreclosure, former Grand Soleil partner files for bankruptcy

By Mary Hood (Contact) | The Natchez Democrat

Published Saturday, February 28, 2009

NATCHEZ —Grand Soleil partner Charles Cato filed for bankruptcy to stop foreclosure proceedings Friday morning.

However, he was unaware that Britton & Koontz bank and Grand Soleil had reached an agreement, and there would be no foreclosure.

Cato’s attorney Jay Verona said in July, Cato sold his partnership back to the Grand Soleil, LLC, and is now owed money.

“They agreed to pay him certain amounts of money over a period of time,” Verona said.

To assure he got his money, Cato filed a lien against the property.

“That secured the money that he is owed,” Verona said.

When Britton & Koontz issued Grand Soleil foreclosure notice in which a three parcels of land could have been sold, Cato could have lost his money, his attorney said.

In order to stop any foreclosure proceedings, Cato filed for involuntary bankruptcy.

“We were concerned,” Verona. “We were not sure that the LLC was going to take appropriate action.”

Filing for involuntary bankruptcy would have forestalled any foreclosure proceedings, Verona said.

“When we couldn’t get confirmation that they had canceled the sale, we filed involuntary to stop the sale and preserve the assets,” he said.

However, Britton & Koontz and Grand Soleil reached an agreement late Thursday afternoon, and the foreclosure proceedings were nullified.

Verona said he still plans to go forward with the bankruptcy.

“I think the bankruptcy is in the interest of all the creditors, not just my client,” he said.

The bankruptcy was filed in Tampa, Fla.

According to petition, $43.5 million is owed.

Comments

Posted by Natchezbear (anonymous) on February 27, 2009 at 11:32 p.m. (Suggest removal)

Hold on kids .......THE PLOT THICKENS!

Posted by Amikoos (anonymous) on February 28, 2009 at 4:27 a.m. (Suggest removal)

What happens now Natchezbear? I'm not to sharp on bankruptsy procedings. What do you think this will mean for the Tribes interest? For our Tribal decision makers, is there a valuable lesson to be learned from this? One thing for certain, they should have listened to the concerned Tribal membership.

Posted by kpage1 (anonymous) on February 28, 2009 at 9:12 a.m. (Suggest removal)

Does this mean the Wisconsin Chippewa will get their money back if Cato does? Why are they not recogized as being owed money, as well? When this report was written, why didn't anyone ask a tribal member how they feel about this...after all, they've got much invested in this. Why hasn't anyone followed up with some members of the tribe who visited Natchez to check on the progress of the project? They were here. And they were not impressed.

Posted by Natchezbear (anonymous) on February 28, 2009 at 11:33 a.m. (Suggest removal)

This story has more twist and turns than the Mississippi River itself.It would depend on when Cato filed his lien Amikoos, it appears Cato is after B&K Bank. But tell me how in the world he is owed 43.5 million? The Indians are owed nearly as much, not to mention the few million owed to contractors.We don't know how much B&K is owed. I don't see that much property value to add up to that sum. Why would Cato sell his interest and not get paid, be quiet till now,then take legal action at this late date?Sherlock Holms, Jethro Gibbs ,Monk and Columbo together couldn't solve this mystery! Most importantly there is a big difference between filing a Lien (one is owed money)and filing for Bankruptcy ( one is owes money).
“I think the bankruptcy is in the interest of all the creditors, not just my client,” Cato’s attorney Jay Verona said.I don't understand how Cato's bankruptcy would be in all creditors best interest. Looks like the script for the latest installment of the CSI series..........."Natchez CSI"

Posted by snatchez (anonymous) on February 28, 2009 at 12:04 p.m. (Suggest removal)

why don't we see a lien from the Indians. They must be somewhere in this deal or maybe their leaders are part of the theft ring that has to be involved. Why is Cato owed money when there is not a casino. If the Indians put 30 million in the deal, it must be buried on the grounds somewhere because BK lent the money, Cato lent the money, the contractors lent the money, so where is the indian money. Maybe their money is called wampum. Hi Ho Silver and Little Beaver. Oh, how the hell did the gaming commission give these theives a gaming permit.

Posted by NatchezEnema (anonymous) on February 28, 2009 at 12:59 p.m. (Suggest removal)

How many more ghosts are floating around in this crooked house of deals. Sounds to me like this is some kind of power play by Cato. I know there is some paperwork of this Cato Bankruptcy floating around town and that he is fileing for chapter 7, not 11. This amount is what he would have been owed over the life of this Casino deal. I heard Peter Renaldi has a copy and will have it published in his paper soon. Really, a copy of it not is not hard to get. I am pretty sure the Democrat knows a lot more about the paperwork also. But, when you're under a thumb it's hard to get it out. If the democrat was worried about its local contractors and home town people (that it serves) it should have printed copies of these suits. At best it would have put pressure on the people who owe, at least it would have let the local contractors and their families know that the Democrat supports them. After all, this has been the biggest news in this town for the last couple of weeks. Why would any Natchez citizens have to go to www.ldfnews.com to get most of the facts or see the suits instead of the democrat website is beyond me.

Posted by SayItRight (anonymous) on March 2, 2009 at 5:11 a.m. (Suggest removal)

In what court (state, county, district etc.) did Cato file for BR? If the court records are available online in that district/jurisdiction you can look them up with a few keystrokes.

Posted by snowgarden (anonymous) on March 2, 2009 at 8:46 a.m. (Suggest removal)

"The bankruptcy was filed in Tampa, Fla."

Posted by SayItRight (anonymous) on March 2, 2009 at 7:30 p.m. (Suggest removal)

Found nothing on Charles Cato in Hillsborough County.

Found some items in Pinellas County.

http://pubtitlet.co.pinellas.fl.us/civil...